What Is Adidas’s Corporate Strategy?
Mary Jane Quinn BUS –421 CSA 4
TESC 0432752 Oct 2009
1. What is adidas’s corporate strategy? Was there a common strategic approach used in managing the company’s lineup of sporting goods businesses prior to its 2005-2006 restructuring? Has the corporate strategy changed with restructuring? “Adidas’s corporate strategy has been all along to improve on athletic footwear so as to give athletes an edge in competitive events (Sunset, 2009).” Their common approach has been to merge and divest other sporting goods, and apparel and footwear entities, to implement a marketing strategic tool of matching their product line with famous athletes and sporting events according to their product line. Adidas’s goal has been to focus on surpassing Nike the leader in the global sporting goods industry. There has since been an obvious change in strategic approach from prior to acquiring Reebok International and divesting Salomon winter sports line in 2005 and 2006. They were unable to integrate the winter apparel line of Salomon with the adidas footwear thus having created an unattractive acquisition (Gamble, 2010 p. C-332). The restructuring has changed strategy as now integration forms a more close and narrow resource fit. More cross business value chain match ups appear When the German baker Adi Dassler tried to design footwear back in 1920, he tried to focus on producing for athletic events. He integrated studs and spikes into the track and field shoes and gave them to athletes in the 1928 Olympic games. He made his shoe distinguishable by applying two stripes on each side (Gamble, 2010, p. C333). He continued to innovate and in 1952 invented screw in spikes for his track and field shoes, partially crediting Germany’s World Cup Championship. Adidas continues to this day to match their product line to famous athletes and events (Gamble, 2010, C-336). To improve their products for comfort, support, fit and re-invent such as by
TESC 0432752 Oct 2009
1. What is adidas’s corporate strategy? Was there a common strategic approach used in managing the company’s lineup of sporting goods businesses prior to its 2005-2006 restructuring? Has the corporate strategy changed with restructuring? “Adidas’s corporate strategy has been all along to improve on athletic footwear so as to give athletes an edge in competitive events (Sunset, 2009).” Their common approach has been to merge and divest other sporting goods, and apparel and footwear entities, to implement a marketing strategic tool of matching their product line with famous athletes and sporting events according to their product line. Adidas’s goal has been to focus on surpassing Nike the leader in the global sporting goods industry. There has since been an obvious change in strategic approach from prior to acquiring Reebok International and divesting Salomon winter sports line in 2005 and 2006. They were unable to integrate the winter apparel line of Salomon with the adidas footwear thus having created an unattractive acquisition (Gamble, 2010 p. C-332). The restructuring has changed strategy as now integration forms a more close and narrow resource fit. More cross business value chain match ups appear When the German baker Adi Dassler tried to design footwear back in 1920, he tried to focus on producing for athletic events. He integrated studs and spikes into the track and field shoes and gave them to athletes in the 1928 Olympic games. He made his shoe distinguishable by applying two stripes on each side (Gamble, 2010, p. C333). He continued to innovate and in 1952 invented screw in spikes for his track and field shoes, partially crediting Germany’s World Cup Championship. Adidas continues to this day to match their product line to famous athletes and events (Gamble, 2010, C-336). To improve their products for comfort, support, fit and re-invent such as by